A government guarantee has a huge potential value, but it is seriously devalued when it does not guarantee the right thing. I estimate that the UK government may be paying up to 2% p.a. additional interest for this reason. Other governments likely pay the same or more.
Is this a good thing when governments are trying to save money in other, more damaging ways?
Read my blog for more information or my entry on this site and let me know...
http://www.edward-ingram.blogspot.com
I may attach the full spreadsheet analysis later, when ready.
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